By HEATHER CATHLEEN COX
Staff Writer
reporter@sbnewspaper.com
Officials with the City of San Benito elected to adhere to advisement from the city’s financial planners, Estrada Hinojosa & Company, Inc., and borrow nearly $3.1 million in the form of a Certificate of Obligation to repair city streets. The effort should be finalized December 6, according to Donald Gonzales of Estrada Hinojosa.
Of the total amount, just shy of $3.1 million, $2.95 million will be allocated for street repairs, with the remaining balance, roughly $142,000, going to cover the underwriters’ fee.
Before last week’s meeting, the city had contemplated borrowing up to $3.5 million. Gonzalez, however, said he believes interest rates might increase, and to be safe, he said borrowing more was not advisable.
The city will secure an interest rate of 2.55 percent for repayment of the loan and will establish a plan to repay the amount in full over the next 20 years. Funding for repayment of this CO will come from the $.04 per $100 property valuation property tax hike, approved by the commission in September.
The San Benito City Commission has requested assistance from the city to help identify streets in significant disrepair. City Manager Manuel Lara said a team of individuals, as well as persons from San Benito’s police and fire departments have already canvassed city streets and made their initial assessments. At this time, a finalized list of streets has not been compiled.
Assistant City Manager Hector Jalomo estimated materials for repairs might cost $17,500-$19,000 per city block; albeit, this number is merely an estimate. The figure, said Jalomo, is inclusive only of materials and does not include labor or equipment.
Additionally, the city will perpetuate its search to hire a street supervisor. Applications are currently being accepted. Lara said, “If I can find a qualified supervisor who can train our staff, we’re going to go as cost effectively as possible. If I am not able to bring in a qualified person that I feel comfortable with, we might do it in-house and go out for bids.”
According to Assistant City Manager Art Rodriguez, the city will soon hold a workshop to help expedite the process of finalizing street selections. Lara said he is making plans to commence street repair in March or April of 2013, weather permitting.
Read this story in the Nov. 14 edition of the San Benito News, or subscribe to our E-Edition by clicking here.
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